HUD And REO Property Preservation

BPWY

I'm sure we can all list horror stories we've witnessed or heard about.
Freeze damaged plumbing from improper winterization, bottom feeders bring their own junk, tires, or paint to a foreclosure property in order to 1. get more work, and 2 dispose of their own stuff.
etc etc

What I can't figure out is how these guys are getting into the industry without insurance. NOBODY has given me work before I showed them proof of my insurance.

BPWY

Excitement.....


any of you guys and gals have one like this??

I get an initial secure w/o. Says to call real estate agent prior to beginning work. I call the guy, hes nice enough but very adamant that I am not to enter the property because its for sale and the bank has not gone thru 100% of the foreclosure process to become the legal owner. If I enter the property hes going to have the cops come arrest me in an effort to teach the banks a lesson.

I call my MFS company, they say that when a w/o is issued that I am to proceed with the w/o unless the cops tell me not to.
I call the agent back and he is very adamant that this is not going to happen and hes already called the cops and they are on the way. So I sit in the truck for about 15 mins. Cops no show.
So I call the PD on their non emergency number. VERY nice lady that answers the phone. Shes heard the agents side already, says the guy I need to talk to is on the phone and to please hold.

A moment later the Sarg comes on the line and tells me that as long as I have a w/o there is nothing he can do to me. The matter of who is 100% legal owner at what time is a civil matter and not some thing that he can do any thing about. He isn't sending an officer out and if the agent were to show up and harass me to call him back. Harassing me while performing a legit w/o is a criminal matter and that is something that the cops can do some thing about.

So any body else have an exciting day this week? lol

brm1109

I am really getting frustrated lately. I see more and more companies that are advertising for business and are not even properly licensed. I do trash removal and you need a special DEP permit that took 1 1/2 yrs. to get and I have all the insurances.
Then you look on places, especially Craigslist and everybody and their brother is advertising and most of them don't have a license number in the ad which you need to have.
Finally this week, I actually called the enforcement unit and complained about these companies. Was told that they are looking into them.
Permits, insurances, taxes, then you have people charging half because they have none of it to pay.

mtmtnman

DEP permit??????? I woulda expected you to be in California if i didn"t see your profile. We still have green box locations here to get rid of our trash. Just a bunch of dumpsters on the side of the road. No business licenses or such required either. All those things are is a tax on small business IMHO! Liability ins, is all i need here. This is the reason i moved to a business friendly state!! I'll have to agree the cut throats elsewhere are hurting us here too though. They get the rates so low that the nationals think that all can work for the same rate. As many miles between jobs here if the rates are not toward the top of the scale i might as well stay home in the easy chair.

BPWY

Recently I was contacted by a company wanting to become a national. We only thought safeguard was screwing every body.


$25 grass recuts up to 5000
up to 10,000 $35
up to 15,000 $45
$55 winterizes

I declined to work for them on the basis of their very low level pricing. This pricing structure is below costs of material, equipment wear and tear and replacement, insurance costs, vehicle costs etc etc etc etc. Their response was that some very large companies are covering entire states for them at this price level. If I wish to reconsider working for them at this level they'd be happy to have my company work for them.
One thing that most folks do not realize is that in the west we have counties that are bigger than some states in the east. So yeah a contractor could cover all of Rhode Island and cover far less sq miles than say just one county in WY, NE, CO, MT, UT, NM, NV etc etc etc.

The county I live in isn't that large compared to some in surrounding areas, and its still more than twice the size of RI.


One is forced to wonder if their clients are really that cheap or if they are just taking that much off of the rate. When I declined to work for this company part of the reply was "this is all paid to you, no discounts". Well aint that nice.
Their pricing is about 15 or 20 yrs ago. Not in the days of $3 gas and expected to climb.

I told them when they paid me HUD rate less 20% discount I'd be happy to consider working for them.

mtmtnman

I just read your e-mail BPWY, You forgot:

Boarding Small Opening $23.00
Boarding Medium Opening $30.00
Boarding Large Opening $34.00
Boarding Sliding Glass or Double Door $58.00
Boarding Single Car Garage Door $90.00
Boarding Double Car Garage Door $135.00

All the prices are ridiculous but the double car price is a friggen joke!! Typical double car is 7X16 right? Here are the materials:

4 sheets 3/4 CDX $18 a sheet
13 2x4x8 $2 each (2' on center plus sill & top plate)
Concrete anchors for sill plate $10
Box of screws $10
Grand total $118!!!! This does not include sales tax which i don't have here but most of you do. So i am going to spend an hour driving to the job, an hour + boarding and an hour driving back to the shop for $17?????????? HUD Allowable is $276 at $1 a United Inch so these yahoos are taking a 51% discount!@#$^&&%#!!#$!!! I wonder who these guys think they are going to get to do the work?????

BPWY

According to the email I got I run in a very small crowd of folks that didn't like their pricing. "most contractors are just glad to have work".
Those most contractors are also gonna be the ones going broke sooner or later.

Now its possible I'm making a mistake by turning down the work, but right now it doesn't look like it. I've got enough work to stay busy.


This is a business, not a charity. I'm not in this for my health.

deckman8887

deckman8887

We have people contacting us to do grass cut`s here in Central Florida for a whopping 15.00 yes 15.00 per cut.They can give us 250 per cycle so that`s 500 per month.I told them if I could`nt make money on 1 cut I sure could`nt make money on 500.Oh by the way I forgot to mention the outstanding payment arrangements 30- 45 days if all photo`s were up loaded in the right format. ONLY IN AMERICA

mtmtnman

There are a lot of thieves out there. Sounds like a local guy who got a deal with a national and now wants to hire you and keep 75% of what he gets. $15 bucks to mow, blow, edge, bag or rake and take pics. Sounds like a great deal!!!........................................... ........FOR THE GUY PUSHING THE PAPER ACROSS THE DESK!!!! Hell i get $10 for a drive by property inspection!!!!

FremontREO

Boy had a good one today! Been on a large trashout and the crew calls me first thing this morning and someone decided to dump 6 old hotwater heaters in the full 40cyd rolloff container. I go to investigate and all 6 hot water heaters have Safeguard winterize stickers BUT they have boxes in the rolloff container from when they purchase their new hot water heaters....Well I contacted the Police Dept and they sent a policeman (actually very surprised!) and we took one of the boxes down to the "big box" lumberyard where they were purchased and the lumberyard scanned in the scanner numbers through and told the policeman (not me though) who purchased the new hot water heaters. Now here is where it gets real interesting::: Mr. Policeman said this is a very big problem and HE called Safeguard and they told him, after about 20 minutes, what 4 of the 6 hot water heaters were possibly installed from "X" crew so then Mr. Policeman called the City Code Enforcement Division and asked if a plumbing permit was pulled for 4 address and NO was the answer. Now they are filing illegal dumping and plumbing without a permit tickets!!! I LOVE IT! I guess it helped the Policemans brother and father are both licensed plumbers

a1propertyclean

Great story, FremontREO. Most complaints are dead ends. I'm glad yours produced results.

Linda

__________________
Linda @ All REO Preservation
http://allreopreservation.com
allreo.vendor.review@gmail.com [experienced vendors only - please list state and counties if you're looking for work]

FremontREO

Linda maybe some of these crews will get what they deserve! I just wish I coulda "overhead" who they were talking about but nope.

Ok my next post is for everyone to consider!

FremontREO

OK does anyone have any feelings on how the RRP rules are going to affect the P&P and REO preservation work? I am a certified lead renovator already but love watching the posts and concerns about getting the certification.
I spoke with a "major" service company and what their intentions are on handling pre 1978 homes and they have absolutely no idea what I was talking about Now I consider that an opportunity! Now when I was in school a while back I spoke with one of the environmental instructors and they said that "changing locks" would be ok and "maybe" winterizing but removing debris or anything that disturbs the "dust" inside a home you have to be certified as a Lead Renovator and have the RRP pamphlet signed before doing ANY work inside the home. Now I see a lot of options here--including higher bid rates for containment zones, "making sure" your competition is licensed and a few other ideas. The bank is going to have sign the RRP form since they can't opt out since someone may purchase the house and have children so I think they are in a corner on this law....
So whats everyones idea on this?

BPWY

As I read it trash/debris removal wouldn't be effected.


Unless your activities disturb more than 6 sq ft of paint.

http://www.epa.gov/lead/pubs/renovation.htm


What am I missing?

BPWY

From realtor.org

http://www.realtor.org/government_af...paint_realtors

As I understand it trash outs aren't effect unless you are messing with the painting or replacing the windows.
If you are paint over existing paint without sanding or in any other way disturbing the paint you're exempt.

deckman8887

I think the Banks will try and weasel out of anything they can. Lead based paint,mold,and asbestos are NOTHING to mess around with.In

Florida
anything to do with these 3 problems requires a license issued by the State and governed by Dept. of Business & Professional Regulation.SO IT BLOWS MY MIND THAT PEOPLE ARE GIVING ESTIMATES WITH-OUT PROPER KNOWLEDGE AND EDUCATION IN THIS TYPE OF WORK.The banks will go with the cheapest bids and turn a blind eye if they can get away with it.

deckman8887

Let me clarify a little bit ( not all banks/servicers are the same)Asbestos abatement whether its old VCT on the floor or old siding or roofing materials or mold from a plumbing or roof leak takes more than ripping the stuff up and replacing it. Also houses that are PLASTERED inside NOT DRYWALL have a 99% chance of having Asbestos in the actual plaster itself.The lead paint is another issue in itself.Now with that being said I do not see the banks paying a pretty penny to have a licensed professional company to take care of the problem when there are so called contractors who will do it under the table and at 1/3 the price ,it`s like making chicken salad out of chicken !@#$, it could look good but still tastes like!@#$
Just my 2 cents.

FremontREO

OK I have to agree about the 6sf of paints but it can go a little farther and I'll look up the regs...BUT I know that if YOU send in the RRP form to be signed by the Servicing Company they are going to ask "what the hell is this and are we breaking some law?"...Understand that every service company has that little clause "you are responsible to follow all laws, ordinances, codes etc"....Well if this is the new EPA rule than you send that little form in with your bid Do you actually think they are going to ignore? Maybe send to the legal dept? They know that they are now in the liability string for any lead exposures and I don't think any bank is willing to take this risk without doing it right..I might be wrong but I have been speaking with several P&P companies and they think in April all **** is going to break loose since they will be sending in the RRP form for signature. Now I think if YOU send in this form then YOU look like the professional and you can charge more for different things.....JMHO

mtmtnman

Personally i can live with the Asbestos laws as i see danger with the dust especially since i know many people from Libby Montana where they mined Vermiculite for many years and now there is a lot of cancer in that town. The lead paint thing on the other hand is a joke IMHO. I grew up in the house that my father and grandfather grew up in built in 1862 full of lead based paint and lead piping for fresh water plumbing. The crib i was in as a baby, my dad was in as well as my aunt, my brother and both of my daughters. I did a test on it a few years ago and sure enough, lead based paint! Grandpa lived to 86 and died of a stroke. Dad is healthy as a horse @ 66, i don't seem to have any issues @ 39 and my daughters are fine. Of course i fed them well and didn't let them go around chewing on the furniture or walls and the house was kept clean. PAY ATTENTION TO YOUR KIDS!!! I remodeled both the main house built in 1862 and the hired man's house built in 1899 from top to bottom in 94. Did i wear a mask? Hell yeah! I was more worried about the Hantavirus than lead paint since our house was post and beam with no insulation and 18" thick walls the inner walls were a great place for the mice to hide from our barn cats. IMHO the regulations are a way to protect people from being stupid and not paying attention to their kids. Just like the auto kill on a lawnmower so an idiot can't reach into a running mower and cut his hand off. Another tax on society. You can find all this kind of garbage also starts on the Left coast. Just like the trans-fat issue today. Don't eat the crap!! No reason to regulate it!! If everyone would get there nose out of the damn TV and sports teams and pay attention we wouldn't have half the issues we do!!

Back on the lead. Just 3 years ago i replaced a 1" lead service in Helena Montana that fed 2 homes built in 1902. Both had all plumbing replaced in their homes a few years before and had the water tested. No lead in their water even though they were serviced by a lead pipe from the city main!! In this part of Helena there are still hundreds of lead services and no one knows any better until they rupture usually around this time of year with 6' of frost in the street!


Lead paint law??? FOLLOW THE $$$$$$$$$$$$$$$$$$$!!!!!!!! Per one of my brokers, Remediation could run close to $30,000 on a house worth $95,000. Needless to say...crazy price. He did a little research, and with the lead based paint report in hand you can hire a regular painter and have the test re done after the paint is completed, to make sure it was remediated. (the test runs at about $500). All this is not a must though, if you want to rent it...you still can ...but at this point you would disclose there is lead base paint at the house. To sell it...it's the same...you would have to disclose it.